What to Know When Buying a House and Land Package
House and land packages are excellent investments that can save you time and money while looking for a home. They’re exactly what they sound like — packages that include a new home design block complete with underground services.
Instead of finding a block and a builder to build your home, the land, the house design, and the construction, all fall under one convenient deal. You’ll receive two contracts — one with the builder and one with the land developer.
However, while it sounds simple, getting started can be complex and overwhelming, especially for first-time buyers. You’ll have to carefully consider your location, design, and financing options before you make a packaged house and land purchase.
At Maidment Group, we understand that buying a house is an important and challenging decision, so we’ve created this guide to help you. We’ll take you through what you need to know if you’re considering buying a house and land package.
The right location matters
Before you start choosing your house’s design or financing options, you’ll need to consider your location. Where you live will determine many factors of your daily life and affect your property’s value in the long run.
Some factors to consider when selecting a location for your house and land package are:
1. Quality of life and property market
Research the area you’re planning to buy in. Check the real estate market, average house prices, and any visible trends over recent years. Do more general research into what life is like in the area — this can be purely surface level. Do people seem friendly there? Does it suit your preferences? Is there enough nature around? What’s the culture like? Thinking about these things before getting deeper into the process can help you to find a location you’ll enjoy living in.
2. Access to amenities and services
Many house and land packages are offered in fringe locations. If this is what you’re looking for, ensure there’s a suitable range of amenities and services in these areas. This will guarantee that your day-to-day living is convenient and that you can access shops, medical facilities, parks, and recreational facilities.
3. Proximity to transportation hubs and major roads
Check the accessibility of the location — see how close it is to any nearby cities or attractions and how long it takes to get there by public transport or driving. A reliable and convenient public transport system near your home can make a big difference, so weigh this before deciding.
Choose the best design for your needs
Once you’ve chosen the location for your house and land package, it’s time to start browsing available designs. It’s essential to consider aesthetics and utility equally.
1. Size of the house and block
A large block of land will give you space for outdoor activities such as sports or gardening. A smaller block, however, will require less maintenance and is often more affordable. But it’s not just about the size of the land — it’s how the land is used. Consider the ratio of the house to land. You might have a design with a large house but not much extra land or a small home with plentiful outdoor space. Consider the layout that’s best for you before considering the interior design.
2. Number of bedrooms and bathrooms
This factor will depend on your family size and how often you plan to host guests. Of course, bedrooms can also be easily converted to office or recreational spaces.
3. Energy efficiency and sustainability features
It’s becoming increasingly important to be as eco-friendly as possible. Select a house design that uses eco-friendly materials with sustainable features such as good insulation and potential for renewable energy like solar panels.
4. Potential for customisation, renovation, and home improvements
Improvements and renovations can make your house an even better home. As with any home, you’ll want your house and land package to be perfect for your wants and needs. Before you choose one, check if you can customise the design before and after building.
Understand the fine print
It’s essential to understand precisely what you’re getting from a package, the amount of work you have to put in, and whether you’ll need any extra help. Each package is different. For example, some packages are ‘turnkey’, where the house is already built, and you can move in immediately. However, most house and land packages include a design that will be built over a few months.
1. Contract terms and conditions
As with any important documents, carefully review your contracts for a house and land package and ensure that everything is as you expected. Convey any questions or concerns with your builder and seek legal advice and guidance.
2. Tax and stamp duty
When you buy a house, you pay stamp duty (a tax for property purchase and transfer) on both the land and the house. But when you buy a house and land package, you pay only for the land, as no transfer for a house takes place. This is a considerable perk that can save you even more money.
3. Deposits and payments
Once you’ve chosen your package, you’ll have to pay a reservation fee to secure the land and make a deposit for the property. The deposit should take into account the reservation fee.
4. Financing options
While house and land packages are known for being relatively affordable, they’re still significant purchases. You’ll probably have to take out loans to finance the construction and acquisition. You can bundle the loans together or take out separate land and construction loans. Repayments of a construction loan are usually made according to the five stages of the building process. If you’re unsure about what’s required (some lenders and builders have different practices), consult your lender and builder and ensure everyone is on the same page.
Communicate with the builder and lender
Maintaining open lines of communication with your builder and lender throughout the process is essential. Keep records of all necessary documents, conversations, and receipts. The building process can be lengthy, so don’t forget to check in and respond to any updates your builder may have. Communicate any concerns immediately and be honest and transparent. This will ensure your house and land package meets your needs and preferences. Make decisions about the design, materials, finishes, and any customisation early in the process and communicate them effectively.
Get started with your house and land package
Buying a house and land package is a complex process, but by making sure you’re ticking all the boxes and keeping the most critical variables in mind, you can make it easier for yourself. Don’t hesitate to consult professional help, and remember to make crucial decisions with a clear head. If you follow our guide, your house and land package will be convenient, straightforward, and well within your budget and means.
Maidment Group is proud to offer a range of house designs in North Queensland that include everything you need, bundled into affordable house and land packages. Browse our range to find the perfect package for your new home, whether it’s a turnkey package or a house design. If you need help choosing your house and land package, contact our friendly team for more information or enquire to schedule a consultation.
